CENTRE AREA TRANSPORTATION AUTHORITY Board Meeting Minutes-October 28, 2002

CENTRE AREA TRANSPORTATION AUTHORITY
REGULAR BOARD MEETING MINUTES

October 28, 2002
4:00 p.m.
STATE COLLEGE BOROUGH BUILDING
Conference Room 241, 243 South Allen Street

BOARD MEMBERS PRESENT:
John Spychalski, Chairman
Donald Sherman, Vice-Chairman
Richard Kipp, Treasurer
Joseph Davidson
Gary Powers

OTHERS PRESENT:
Hugh Mose, General Manager
Joseph Gilbert, Director of Transportation
Judith Minor, Director of Administration
L. Eric Bernier, Director of Service Development
Jacqueline Sheader, Marketing Director
Diane Heichel, Executive Assistant
Richard McCarl, State College Borough Liaison

I. CALL TO ORDER
Chairman Spychalski called the meeting to order at 4:08 p.m.

II. PUBLIC COMMENT
Chairman Spychalski for any public comments. No public comments were given.

III. OLD BUSINESS

A. Approval of Minutes of September 9, 2002 Board Meeting
Mr. Sherman moved that the Board approve the minutes of the September 9, 2002, Board meeting. Mr. Powers seconded the motion. There being no further discussion, Chairman Spychalski called for a vote and the motion passed unanimously.

B. Receipt of the August and September 2002 Finance Reports
Ms. Minor noted that on the first page under Transportation Revenue, there is a trade-in allowance on three paratransit vans which were purchased with Section 16 funds. PENNDOT pays the full amount for the new vehicles and CATA then pays the vendor minus the $11,000 trade-in value, reflected in the miscellaneous revenue.

In response to Mr. Sherman, Ms. Minor noted that the revenues may look unusually high for this quarter, but that includes the $11,000 for the trade-in allowance. Mr. Sherman also pointed out that the heading on page two should say "revenue," rather than "expenditures." Ms. Minor will point this error out to the bookkeeping office, which she stated out has just began processing the reports through a different reporting format.

Mr. Sherman reviewed the report, stating that to him it looks like the Authority's revenue for the first quarter exceeds the anticipated budget even though ridership is down from this time last year. In response, Ms. Minor noted that she does not calculate the budget per quarter.

Mr. Mose noted that so far this year, the Authority has consumed 20.11% of the budget, which shows an improvement over last year's 21.8%, so we are doing a little bit better in expenses than where we were last year in the first quarter.

Mr. Mose also reported on several problems with the software programs which have delayed the printout of the ridership reports for the past several months. Ms. Minor reviewed the changes in the template for the ridership reports and noted that the reports should be available at next month's meeting. Mr. Mose reviewed how the data is collected from the fareboxes and then transposed into the data reports.

In response to Chairman Spychalski, Ms. Minor reported that at this time, CATA has locked in natural gas prices through January. She reviewed the prices and expressed her hope that the market will drop closer to the budgeted price.

Mr. Mose complimented Mr. Sherman on doing his homework on this year's revenue compared to last year at this time. He explained the thought process in preparing this year's annual budget and adding a little cushion on the revenue side. He also reviewed some of the revenue items which have generated more income than anticipated.

In response to Mr. Powers, Ms. Minor noted that revenue and expenditures are always equal. The September report shows 25% of the fiscal year is gone, but the budget is only 20.11% spent.

Mr. Kipp moved that the Board receive the August and September 2001 Finance Reports. Mr. Davidson seconded the motion. There being no further discussion, Chairman Spychalski called for a vote and the motion passed unanimously.

C. FY 01/02 Service Standards: Final Report
Mr. Bernier reviewed the Service Standards Year-end Report for 2001/02, noting that this information has been submitted to PENNDOT to show the Authority's performance for the past year. Since this is submitted electronically now, there is no form to provide to the Board. He also reviewed the five-year comparison chart which shows the Authority's performance levels. In response to Mr. Mose, Mr. Bernier noted that the only area that the Authority did not meet the goals set was Mean Distance Between Road Failures. CATA's policy is to replace buses even if they are still operational, such as if an air conditioner fails. The goal is set low to meet this particular policy.

Mr. Davidson moved that the Board accept the FY 2001/02 Service Standards Report. Mr. Powers seconded the motion. There being no further discussion, Chairman Spychalski called for a vote and the motion passed unanimously.

IV. NEW BUSINESS

A. Receipt of 2001/02 Audited Financial Statements
Ms. Minor noted that Reinsel and Company, the Authority's audit firm, is responsible for preparing both year-end financial statements and the federally-required single audit report, which includes information on federal grant activity and compliance with requirements for federal grantees. The information included in the financial statements and single audit reports was reflected in the final June Finance Reports distributed at the last Board meeting. Ms. Minor then reviewed the audit findings.

In response to Mr. Davidson, Ms. Minor noted that certain adjustments such as depreciation are made after the audit, which is normal. However, next year, the Authority will have to do the depreciations, rather than the auditors. It's all pretty straight-forward and everything is depreciated on a straight line basis. There was further discussion on what are considered to be capital purchases.

In response to Mr. Davidson, Mr. Bernier noted that the operating cost per passenger does not hinge on the fares, it shows the actual costs of operating. Ms. Minor reviewed the process of projecting the data.

Mr. Sherman moved that the Board receive the FY2001/02 year-end Financial Audit and Single Audit Report and authorize their distribution. Mr. Kipp seconded the motion. There being no further discussion, Chairman Spychalski called for a vote and the motion passed unanimously.

B. Filing of State Capital Grant for Farebox Card Readers
Mr. Mose noted that last year the Authority applied for CATA's share of the 100% state bond money that was made available to small urban transit systems as part of Act 3 of 1997. The funds were subsequently awarded and now the grant application needs to be filed, which requires the Board Chair's signature. Mr. Mose reviewed the funding process and stated that the funds were actually awarded last year, but CATA was not notified.

Mr. Mose added that CATA requested and received $225,000, which is the full amount for which CATA is eligible. This amount of funds should be more than sufficient to cover the cost of modifying the fareboxes to add magnetic "swipe card" readers, and to upgrade the bus pass printing system to enable its use to encode mag stripes on passes. However, before a commitment is made to purchase this "swipe card" technology, staff plans to look at other techniques for automating the bus pass validation system. Since this is 100% state money, there will be no local share required.

Mr. Davidson moved that the Board authorize the Chair to sign a grant application in the amount of $225,000 for state capital bond funding for the purchase of farebox card readers and associated equipment. Mr. Powers seconded the motion. In response to Mr. Powers, Mr. Mose noted that he feels staff should look at the new technology to see what latest updates are available and what would be the most beneficial to CATA. Mr. Davidson expressed his concern that the card could then be used by more than one person. Ms. Minor and Mr. Bernier noted that it will be possible to still have a photo ID card, and the swipe card would take care of expiration dates, route sensitive passes, etc.

In response to Mr. Sherman, Mr. Mose noted that the entire fleet could be outfitted with the card swipe technology for under $225,000. There being no further discussion, Chairman Spychalski called for a vote and the motion passed unanimously.

C. Smart Commute Program
Mr. Mose called the Board's attention to the attachment in the Agenda packets which described Fannie Mae's Smart Commute pilot program, adding that this program is designed to reward home buyers who purchase in areas served by public transportation. Bill Tobin, and more recently Steve Suder and Mr. Mose have put together an outline of a program that they think could work here in the Centre Region. He added that this program was presented to the Council of Government Transportation Committee and was rejected on the grounds that the Committee did not feel this was something that the COG should become involved with. However, they did not discourage CATA from pursuing the program. Mr. Mose reviewed the program and how it works with future home buyers in the area, to encourage them to purchase homes along public transportation routes. Mr. Mose also reviewed the incentives offered by the lending institutions and what would be expected from CATA. If the Board concurs, the staff would work with representatives from Fannie Mae and local lending institutions to implement the program.

In response to Mr. Sherman, Mr. Mose pointed out that the only limitations would be the limits of the mortgages Fannie Mae would write, which he believes would be up to the $300,000 range. There was further discussion on how this program could save a family substantial yearly expenses on owning an automobile or a second automobile. Ms. Sheader also added that Fannie Mae would reimburse CATA for the preparation of marketing materials up to $10,000. Mr. Davidson stated that he feels the people electing to participate in this program will be home buyers in the Bellefonte or Pleasant Gap areas, rather than in State College. There was further discussion on how the program works and how people become qualified for the program.

Chairman Spychalski pointed out that there is no way to quantify how this will impact the Authority at this time. That perhaps it would be a better idea to authorize the General Manager to work with Fannie Mae on all the details and then bring back a final proposal to the Board.

Mr. Powers moved that the Board authorize the General Manager to work with Fannie Mae to establish a Smart Commute pilot program for the CATA service area, to include a special introductory One-Pass rate and certain other marketing activities and then bring back the final program for Board approval. Mr. Davidson seconded the motion. There being no further discussion, Chairman Spychalski called for a vote and the motion passed unanimously.

D. Bus Rapid Transit Technology Development
Mr. Mose noted that CATA has been approached by Chris Johnston, Special Assistant to Deputy Transportation Secretary Rick Peltz, about CATA becoming a test site for the deployment of Bus Rapid Transit (BRT) technology. As he understands it, PENNDOT has access to federal BRT funding, which they are looking to invest in partnership with a local transit system.

Although pursuing opportunities for the application of new technology is one of the goals established by the Board for the current year, the Authority really hasn't had sufficient staff time or expertise to advance the initiative. To help alleviate that situation, PENNDOT is suggesting a three-way partnership with Avail Technologies, a State College based firm, who would serve as our technology manager.

The first step in the process would be to complete a technology investment plan, which is something that Bill Tobin and Mr. Mose tried to interest PENNDOT in funding on two separate occasions. Following the development of the plan, CATA would move into the implementation phase, in which the Authority would outfit some, if not all, of the buses with technologies such as automatic vehicle location, automatic passenger counting, real-time mechanical systems monitoring, etc. The process is expected to extend over a period of several years.

If the Board supports this general approach, the General Manager and other staff will work with PENNDOT and Avail Technologies to prepare a scope of work for a BRT technology development program that would be funded by PENNDOT and utilize the expertise of Avail.

In response to Mr. Powers, Mr. Mose noted that CATA is a prime Authority for several reasons, one of which is that Avail Technologies is located here in State College. Second, PENNDOT also recognizes that CATA is willing to try new things. However, Mr. Mose also pointed out that at the present staff level, it just would not be possible. There would need to be additional staff support to make this happen.

In response to Mr. Sherman, Mr. Mose noted that he does not feel that the installation of this system would require that buses be pulled off the street for any length of time, therefore not compromising the service out on the street.

Mr. Kipp suggested adding Penn State as a fourth partner, to use grad students or personnel from the University for the staff time needed to make this program work.

Mr. Gilbert added that the Intellefare system does not provide the information and reports which would be useful. Presently, there just isn't enough staff time available to learn how to work with the program to extract the information.

Mr. Davidson stressed that he is in favor of proceeding with this project and having staff present a proposal once all the information is available.

As this agenda items was for information and discussion, no formal Board action was taken.

E. Board Work Session
Mr. Mose stated that with the construction winding down on the expansion of the Operations and Administration areas of the Cato Park facility, now may be a good time to look at where the Authority might program future major capital investments. Although CATA has two earmarks for buses, all other capital resources are about tapped out. Nonetheless, if CATA can develop some consensus around what everyone's priorities are, staff can begin the quest for discretionary funding.

Mr. Mose noted that he and Chairman Spychalski have discussed the matter and concluded that a special Board work session might be valuable in setting priorities for the capital program, as well as discussing other organizational issues in advance of the FY 2003-04 budget process. Mr. Mose asked the Board to check their calendars and try to schedule a time before the holidays to hold a special meeting. Mr. Mose added that if the meeting were held at CATA, the Board could have the "official" tour of the expanded facility.

Chairman Spychalski asked that Ms. Heichel contact each Board member to set up a Board work session.

V. OTHER BUSINESS

A. General Manager's Report
Mr. Mose reported that the candidate for the Transit Planner's position has declined the offer. Mr. Mose, Mr. Bernier, and Steve Suder met last week to discuss how to proceed to fill this position.

B. Service Development Report
Mr. Bernier reported that at the September 9 Board meeting, Mr. Powers had asked if the contracts with apartment complexes specified the amount of service provided to each location. Mr. Bernier noted that each contract states that CATA will supply a sufficient amount of buses to meet the demand of that complex. The total apartment complex ridership was down 1.5% last year.

Mr. Sherman pointed out the mention of CATA in the America Rides the Bus from APTA.

Mr. Kipp pointed out that the buses used on the Haunted Preserve and the Haunted Granary were excellently decorated. Mr. Bernier expressed his feelings that the special services are a real tribute to CATA.

VI. ADJOURNMENT
Mr. Kipp moved that the Board adjourn. Mr. Davidson seconded the motion. There being no further discussion, Chairman Spychalski adjourned the meeting at 5:45 p.m.